2002 UGANDA POPULATION AND HOUSING CENSUS Analytical Report ECONOMIC CHARACTERISTICS UGANDA BUREAU OF STATISTICS Plot 9, Colville Street P. O. Box 7186 Kampala Tel: 256 41 706 000 Fax: 256 41 237 553 Email: ubos@ubos.org Website: www.ubos.org October 2006 Recommended Citation Uganda Bureau of Statistics (2002), “The 2002 Uganda Population and Housing Census, Economic Characteristics”, October 2006, Kampala, Uganda The 2002 Population and Housing Census Economic Activity FOREWORD The Uganda Bureau of Statistics supports the Government’s results-based agenda by providing statistics needed for planning, monitoring development performance and progress in the implementation of major national development policies and initiatives. The Population and Housing Census is the major source of demographic and social-economic statistics in Uganda. The country has conducted scientific population and housing censuses at intervals of about ten years since 1948. The latest such census was conducted in 2002 and was the most comprehensive census ever undertaken in Uganda. This census collected household-based data on population, housing, agriculture, micro and small enterprises as well as community information. The Uganda Bureau of Statistics has published the 2002 Census results in different reports at different times and with varying degrees of detail. The Monograph Series provide more detailed and subjectoriented analyses of the census data which relate the findings to the national development policies and targets as outlined in the PEAP. This Monograph on Economic Characteristics contains information on the activity status, characteristics of the working population and micro and small enterprises. The Bureau is grateful to the many institutions and individuals who participated in the planning and/or implementation of the Census. They include members of the Inter-Institutional Steering and Technical Advisory Committees; District Census Committees; field Staff including Mapping Assistants, Enumerators and Supervisors; the millions of individual respondents who provided the required information; Data Processing staff and the authors of the various chapters of this and other Census reports. The Government of Uganda funded the bigger part of the Census. The Bureau is grateful for this collaboration and also the support from the development partners who funded the other cost of the census operations. Finally, the Bureau appeals to the people of Uganda to make maximum use of the census data as a basis for evidence-based policy debate and design; decision-making at every level of society; investment and business transactions; and for many other purposes. John B. Male - Mukasa EXECUTIVE DIRECTOR ii The 2002 Population and Housing Census Economic Activity PREFACE th th The 2002 Census was conducted with reference to 12 /13 September 2002 as the Census Night. During the census, trained enumerators visited every household and collected information on all persons who spent the Census night in the household. Special arrangements were made to enumerate the mobile population as well as those living in institutions. Persons living in IDP camps were enumerated as households and the information was recorded against the areas where they came from. Specifically, persons who spent the Census Night in hotels and lodges were enumerated using a special questionnaire. In addition, the characteristics of Household Heads who were not at home on the Census Night were also recorded. The enumeration was completed within seven days for most areas. UBOS has produced several reports from the census data. In order to increase the utility of the census data, subject specific monographs giving detailed analytical findings of the 2002 Census have been written. These were written by a team of local experts in the different disciplines. In carrying out the data analysis, differentials by sex and rural-urban residence have been studied. Further differentials have been studied with respect to socio-economic characteristics as well as spatial distribution of the population. Also produced is an Abridged Version which contains the summary of findings from all the monographs. This monograph presents the Economic Characteristics (Activity Status, Characteristics of Working Population and Micro and Small Enterprises). The other monographs in series include the following; Volume I: Population size and Distribution Volume II: Population Composition Volume III: Population Dynamics Volume V: Education and Literacy Volume VI: Household and Housing Conditions Volume VII: Gender and Special Interest Groups Where possible, the 2002 Census results are compared with those from previous data sources, mainly the Censuses of 1969, 1980 and 1991, the Uganda Demographic and Health Survey (UDHS) 2000-01 and the Uganda National Household Survey (UNHS) 2002/03. However, these comparisons are limited to national level data only, since disaggregation of data by district or other characteristics for earlier dates could not be obtained. For purposes of presentation of spatial differentials, data are shown for the country’s districts as at the time of enumeration. These have been grouped into four regions namely Central, Eastern, Northern and Western. These are statistical groupings of districts without administrative or political considerations. Previous studies have shown that Kampala City has indicators, which are usually very iii The 2002 Population and Housing Census Economic Activity different from the rest of the districts. This thus makes the Central region appear to be fairing far better than the other regions. In order to make a fair comparison of the regions, the indicators for Central region are presented in two ways viz including and excluding Kampala City. Prior to this monograph series, six other products were published. These are: i. Preliminary Results – giving total population by district and sex, released in October 2002. ii. Provisional Results – giving total population of administrative areas by sex, released in November 2002. iii. Report on the Agricultural Module – giving information on household based agricultural activities, released in September 2004. iv. Final Results: Main Report – giving population and household characteristics based on the final results, released in March 2005. v. Post Enumeration Survey Report – giving the procedure and findings from the Post Enumeration activity, released in October 2005. vi. District Census Report– giving district specific population and household characteristics based on the final results, released in November 2005. In addition, the Bureau will be producing several other reports as outlined below: i. Administrative Report ii. District-level Analytical Reports iii. Census Atlas iv. Poverty Maps iv The 2002 Population and Housing Census Economic Activity TABLE OF CONTENTS TABLE OF CONTENTS..........................................................................................................................v LIST OF TABLES...................................................................................................................................vi LIST OF APPENDIX TABLES...............................................................................................................vii LIST OF FIGURE..................................................................................................................................viii EXECUTIVE SUMMARY........................................................................................................................ix COUNTRY PROFILE..............................................................................................................................x CHAPTER 1:..BACKGROUND................................................................................................................1 1.1 General Information about Uganda ........................................................................................ 1 1.2 Sources of Data...................................................................................................................... 3 1.3 The 2002 Uganda Population and Housing Census .............................................................. 4 CHAPTER 2:..ACTIVITY STATUS..........................................................................................................7 2.1 Background ............................................................................................................................ 7 2.2 Working Age Population......................................................................................................... 8 2.3 Labour Force ........................................................................................................................ 12 2.4 2.5 2.6: 2.7: 2.8: 2.9: 2.10: Labour Force Participation Rate........................................................................................... 15 Unemployment ..................................................................................................................... 18 Economically Inactive Population ......................................................................................... 19 Inactivity rate ........................................................................................................................ 21 Status of Economically Inactive Persons ............................................................................. 22 Economic activity at Community Level ................................................................................. 23 Summary.......................................................................................................................... 24 CHAPTER 3:..CHARACTERISTICS OF THE WORKING POPULATION............................................25 3.1 Background .......................................................................................................................... 25 3.2 Status in Employment........................................................................................................... 25 3.2 Industry................................................................................................................................. 29 3.4 Occupation ........................................................................................................................... 31 3.7 Summary .............................................................................................................................. 34 CHAPTER 4: MICRO AND SMALL SCALE ENTERPRISES………………………………….………….37 4.1 Background .......................................................................................................................... 37 4.2 Distribution of MSEs ............................................................................................................. 38 4.3 Employment in MSEs ........................................................................................................... 40 4.4 Summary .............................................................................................................................. 43 CHAPTER 5: POLICY IMPLICATIONS AND RECOMMENDATIONS…..…………………..……..….45 LIST OF REFERENCES........................................................................................................................47 GLOSSARY OF CENSUS TERMS........................................................................................................48 v The 2002 Population and Housing Census Economic Activity LIST OF TABLES Table 1.1: Number of Administrative Units by Census 1969 – 2002 .............................................. 1 Table 2.1: Distribution of the Working Age Population (14 to 64 Years) by Selected Characteristics ............................................................................................................. 10 Table 2.2: Distribution of the Labour Force by Selected Characteristics...................................... 14 Table 2.4: Labour Force Participation Rates by Selected Characteristics.................................... 17 Table 2.5: Labour Force Participation Rates (LFPR) in selected districts by sex......................... 18 Table 2.6: Unemployment Rate by Socio-economic Characteristics and Sex ............................. 19 Table 2.7: Economically Inactive Population 14 to 64 Years by Selected Background Characteristics ............................................................................................................. 21 Table 2.8: Inactivity rate by age group.......................................................................................... 22 Table 2.9: Reasons for not working Table 2.10: Economic Activities of Communities................. 23 Table 3.1: Employment Status for selected countries .................................................................. 26 Table 3.2: Percentage distribution of employed persons by Selected Characteristics ................. 27 Table 3.3: Percentage Distribution of the Working Population by Status in Employment and Socio-Economic Characteristics .................................................................................. 28 Table 3.4: Working Population Percent distribution by employment categories and Socioeconomic characteristics.............................................................................................. 29 Table 3.5: Percentage Distribution of the Working Population(14 – 64 Years) by Industry and Sex 30 Table 3.6: Employment by sector for selected countries .............................................................. 31 Table 3.7: Percentage Distribution of the Working Population (14 – 64 Years) by Major Occupational Group and Sex ....................................................................................... 33 Table 4.1: Spatial Distribution of MSEs by Residence and Region Table 4.2:Districts with the highest Proportion of MSE’s in Uganda ....................................................................... 39 Table 4.4: Distribution of MSEs by Industry Table 4.5:Employment of MSEs by Residence and Region.......................................................................................................................... 40 Table 4.5: Distribution of Persons Engaged in MSEs by Industry ................................................ 42 Table 4.7: Ownership of MSEs by Industry................................................................................... 43 vi The 2002 Population and Housing Census Economic Activity LIST OF APPENDIX TABLES Table A1.1: Labour Participation Rates by District and Sex................................................................ 49 Table A1.1: Labour Participation Rates by District and Sex ........................................................... 51 Table A1.2: Selected Economic Activity Indicators by District ........................................................ 52 Table A1.2: Selected Economic Activity Indicators by District ........................................................ 53 Table A1.3: Distribution of Business Enterprises by District ........................................................... 54 Table A1.3: Distribution of Business Enterprises by District ........................................................... 55 vii The 2002 Population and Housing Census Economic Activity LIST OF FIGURES Figure 1.1: Map of Uganda showing the Districts as of September 2002 ............................................... 2 Figure 2.1: Labour Force Framework ...................................................................................................... 9 Figure 2.3: Distribution of Working Age Population by Activity Status................................................... 11 Figure 2.4: Distribution of the Labour Force by Age Groups ................................................................. 15 Figure 3.1: Percentage distribution of employed persons by Sector of employment and sex ............... 31 Figure 3.2: Proportion of the Working Population (14 – 64 Years) who were engaged in Subsistence farming .................................................................................................. 34 viii The 2002 Population and Housing Census Economic Activity EXECUTIVE SUMMARY The Ugandan labour force consists of persons aged 14 to 64 years who were either in employment paid employment, self-employed or unpaid family workers) or were unemployed (without work and available for work). Out of the 12 million persons of working age, 6.7 million (56 percent) were in the labour force. About 70 percent of the working persons were subsistence farmers, with females having a slightly higher percentage (80) compared to males at 63 percent. The census findings showed that about 9 in every 10 persons with no formal education were in subsistence agriculture and the percentage reduced with increased levels of education. The unemployment rate in Uganda was 4.6 percent, with a high urban unemployment rate of 10 percent as compared to 4 percent in the rural areas. The unemployment rate was lowest amongst persons without secondary education (4 percent) and highest amongst those with post secondary education (7.2 percent). At the time of the 2002 Census, there were 1.1 million Micro Small Enterprises (MSE) in the country, employing 1.7 million people. The majority of the MSEs were in the trade sector. ix The 2002 Population and Housing Census Economic Activity COUNTRY PROFILE Male Population Female Total Number ('000) 100.0 100.0 100.0 Urban 12.3 12.2 12.4 24,227 2,981 Rural 87.7 87.8 87.6 21,246 Selected Age Groups Children (0-17 years) 57.6 54.6 56.1 13,371 Adults Uganda (18 Years and over) 42.4 45.4 43.9 10,470 Primary School Age (6 -12 years) 22.5 21.4 21.9 5,228 Secondary School Age (13 - 19 years) 16.4 16.1 16.3 3,875 8.2 9.5 8.9 2,113 Working Age Uganda (14 - 64 years) 49.0 51.3 50.2 11,964 Child Labour Age (5 - 17 years) 38.4 36.4 37.4 8,911 Adolscents (10 - 24 years) 33.9 34.4 34.2 8,147 Youth (18 - 30 years) 21.0 23.6 22.3 5,321 Child Bearing (15 - 49years) --- 43.7 --- 5,331 Child Mothers (12 - 17years) --- 14.7 --- 1,798 64.1 65.8 64.9 15,483 Post Secondary School Age (20 - 24 years) Aged 10 Years and Over Aged 50 Years and Over 7.7 8.1 7.9 1,887 Older Persons (60 Years and over) 4.5 4.6 4.6 1,090 Both Parents Alive 86.6 86.7 86.6 11,581 Only Mother Alive 8.0 7.9 7.9 1,061 Only Father Alive 2.7 2.6 2.6 352 Both Parents Dead 2.6 2.5 2.6 345 Do not Know 0.2 0.2 0.2 26 Parental survival ( For Children Below 18 Years) Persons with Disabilities (PWDs) All PWDs1 --- --- --- 838 Physical 48.0 45.4 46.7 392 Hearing problem 15.8 17.6 16.6 139 Sight Problem 23.9 27.2 25.4 213 Speech Problem 5.6 4.5 5.0 42 Mental Retardation 4.3 3.9 4.1 34 Mental Illness 4.3 3.9 4.1 34 10.3 11.5 10.9 91 10,782 Others 1 Some persons had more than one disability, therefore cases do not add up to PWDs Education and Literacy Population aged 10+ and are Literate 77.4 62.4 69.6 Pop Aged 6 -12 years and enrolled in School 86.3 86.2 86.2 4,509 Pop Aged 10+ and Never been to School 13.0 26.5 20.0 3,099 x The 2002 Population and Housing Census Economic Activity Male Female Total Number ('000) Pop aged 14 - 64 years & Working 59.4 47.7 53.3 6,371 Pop aged 5 - 17 years & Working 7.2 6.8 7.0 622 Economic Activities Marriage And Child Bearing Women Aged 50 years + and Never Married --- 3.3 --- 33 Girls aged 12-17 years who are mothers --- 6.8 --- 122 Urban Rural Total Households --- --- --- 5,043 Male Headed 72.4 77.7 76.9 3,880 Female Headed 27.6 22.3 23.1 1,164 4.2 4.8 4.7 --- Subsistence Farming 11.9 77.0 67.9 3,425 Other Economic Activity 71.6 14.8 22.8 1,147 Other Support 16.5 8.2 9.3 471 Average Household Size Number ('000) Source of Livelihood State of Dwelling Unit Temporary Building Materials 26.1 78.5 71.2 3,589 Semi-permanent Building Materials 14.2 10.9 11.4 574 Permanent Building Materials 59.8 10.6 17.5 881 Iron Sheets 82.3 50.3 54.8 2,764 Thatch 11.3 48.2 43.0 2,171 Brick Walls 67.9 40.0 43.9 2,214 Mud and Pole 16.5 54.8 49.4 2,492 Cement Screed 58.4 10.5 17.2 866 Rammed Earth 28.8 85.0 77.1 3,889 Covered Toilet 91.1 66.3 69.7 3,517 Built Bathroom 67.5 29.2 34.5 1,742 Built Kitchen 42.0 59.5 57.0 2,877 Dwelling Unit 30.1 86.1 78.2 3,946 Bicycle 18.8 36.2 33.7 1,701 Television 19.7 2.1 4.6 231 Radio 68.5 46.1 49.2 2,483 Mobile Phone 21.8 2.3 5.0 254 Fixed Phone 2.7 0.2 0.5 27 Construction Materials Household Facilities Household Assets xi The 2002 Population and Housing Census Economic Activity CHAPTER 1: BACKGROUND 1.1 General Information about Uganda 1.1.1 Location and Size Uganda is located in East Africa and lies across the equator, about 800 kilometres inland from the Indian Ocean. It lies between 10 29’ South and 40 12’ North latitude, 0 0 29 34 East and 35 0’ East longitude. The country is landlocked, bordered by Kenya in the East; Sudan in the North; Democratic Republic of Congo in the West; Tanzania in the South; and Rwanda in South West. It has an area of 241,038 square kilometers, of which the land area covers 197,323 square kilometres. 1.1.2 Administration The country was divided into 56 districts at the time of the 2002 Population Census. The districts are sub divided into lower administrative units. These are counties, subcounties, parishes and villages or Local Council 1 (LC 1). Overtime, the numbers of districts and lower level administrative units have continuously increased with the aim of making administration and delivery of services easier. This however, had a negative element in that most of the districts do not have time series data and hence it is not possible to do a trend analysis. The numbers of administrative units at the various census nights since 1969 are given in Table 1.1. Table 1.1: Number of Administrative Units by Census 1969 – 2002 Census Year Level of Administrative Unit 1969 1980 1991 2002 District 21 33 38 56 County 111 140 163 163 Sub-county 594 668 884 958 3,141 3,478 4,636 5,238 Parish In addition, Uganda has a Local Governments System at different levels. These are LC V (District); LC IV (County / Municipality); LC III (Sub – County); LC II (Parish); and LC I (Village). The role of the local governments is to implement and monitor government programmes at the respective levels. 1 The 2002 Population and Housing Census Figure 1.1: Economic Activity Map of Uganda showing the Districts as of September 2002 SUDAN MOYO YUMBE KITGUM KOTIDO ADJUMANI N ARUA PADER GULU MOROTO NEBBI R. N ile LIRA APAC KATAKWI MASINDI D.R CONGO NAKAPIRIPIRIT KABERA -MAIDO L . A l b e rt SOROTI L . Ky o g a KUMI HOIMA NAKASONGOLA KAPCHORWA PALLISA KAMULI BUNDIBUGYO KIBOGA KIBAALE KAYU -NGA LUWERO MBALE IGANGA KABAROLE KYENJOJO JINJA MUBENDE SIRONKO WAKISO MUKONO TORORO BUGIRI BUSIA MAYUGE KAMPALA KENYA KAMWENGE MPIGI KASESE SSEMBABULE L . G e o rg e L . E dw a r d BUSHENYI MBARARA MASAKA KALANGALA RUKU -NGIRI Lake V ictoria RAKAI KANUNGU NTUNGAMO TANZANIA KISORO 0 KABALE KEY RWANDA International Boundary District Boundary Water Body 2 Central Region Eastern Region Northern Region Western Region 50 100KM The 2002 Population and Housing Census 1.1.3 Economic Activity Geography The country enjoys equatorial climate with plenty of rain and sunshine moderated by the relatively high altitude. In most parts of the country, the 0 0 mean annual temperatures range from 16 C to 30 C. Nevertheless, the Northern and Eastern regions sometimes experience relatively high temperatures exceeding 300 C and the South Western region sometimes has 0 temperatures below 16 C. The Central, Western and Eastern regions have two rainy seasons, from March to May for the first rains, and the second rains from September to November. The Northern region receives one rainy season from April to October, and the period from November to March has minimal rain. Most of the country receives between 750 mm and 2100 mm annually. The country has loamy soils with varying proportions of sandy and clay. In addition, it has varying vegetation with tropical rain forest vegetation in the South and savannah woodlands and semi arid vegetation in the North. 1.1.4 Culture and Religion Uganda’s population is made up of different ethnic groups with varying customs and norms. These play a major role in shaping the behaviours and ways of life of the people in the country. Some of the traditional values have changed due to the integration of the people as a result of migration and/or intermarriages. The cultural groupings, such as, Baganda, Basoga, Batoro, Banyoro, Itesoit etc are headed by traditional kings or chiefs who are not politically elected but have an indirect role in community governance and moral build up. There are a number of languages spoken because of the many tribes in Uganda, however English is the official language. The Swahili language is being promoted in the spirit of Regional Socio-Economic Corporation, and integration of the East African Community. The 1995 Constitution of the Republic of Uganda recognizes the freedom to practice any religion. 1.1.5 Education Uganda’s education system is both formal and informal. Under the formal system, the four – tier educational model is followed that is seven years of 1 The 2002 Population and Housing Census Economic Activity primary education, four years of ordinary level secondary education, two years of advanced level secondary education and the tertiary level of education. Each level is nationally examined and certificates are awarded. University education is offered by both public and private institutions. The Universal Primary Education (UPE) was introduced in 1997 to offer free education at the primary level. However, access to secondary and tertiary education is limited to only those who can meet the costs. There are plans by the Government to introduce Universal Secondary Education (USE) in 2007. The government also sponsors about 4,000 students every year through the public universities. In addition, the private sponsorship scheme is operational in the public universities. University education can also be obtained from any of the seven private universities in the country. In addition, a large number of institutions both private and public also offer tertiary education. In addition to formal education there exists informal education to serve all those persons who did not receive formal education. Under the informal system, a range of practical/hands-on skills are imparted to those who have not gone through or only partially gone through the formal system of education. The majority in the informal system are the young adults and/or drop out and disadvantaged children. The Functional Adult Literacy (FAL) programme in the Ministry of Gender, Labour and Social Development also targets older people who did not get chance to go through formal training. 1.1.6 Macro economy Uganda’s economic performance was performing well in the early years of independence; with rapid economic growth and development. In the early post independence period (1962-1966), the economy grew at an average of 6.7 percent per year. By the end of the 1960’s, commercial agriculture accounted for more than one-third of GDP and industrial output had increased to nearly nine percent of GDP, given the new food processing industries. In the early 1970’s, the government targeted an annual GDP growth rate of about 5.6 percent. However, the political instability and associated economic mismanagement resulted in a persistent economic decline that left Uganda among the world’s poorest and least developed countries. In early 1980s, Structural Adjustment programs were introduced which led to strong economic growth of GDP. Hence, the period that followed showed a remarkable increase in productivity and output. This was given impetus by macroeconomic stability resulting from the macroeconomic reforms. The led 2 The 2002 Population and Housing Census Economic Activity to the economy reverting to its high GDP growth rates and low and stable inflation and interest rates from the 1990’s to present. The PEAP target was for a GDP growth rate of 5.2 percent in 2003, and an average of 7 percent thereafter. The economy of Uganda is primarily based on the agricultural sector, with over 70 percent of the working population being employed by the sector. Agricultural exports account for over 45 percent of the total export earnings with coffee, tobacco and fish continuing to be the main export commodities that bring in foreign exchange. In the last 5 years, the telecommunication sector has been the fastest growing sector of the economy, and this is due to the expansion programs and increase in coverage by the major telecommunication companies in the country which have led to increased numbers of subscribers and providers of the services. 1.2 Sources of Data The main data sources for establishing benchmarks for economic and social indicators for Uganda are censuses and surveys. Information is also obtained from administrative records. 1.2.1 The Earlier Population Estimates Prior to 1900, there was limited information on Uganda’s population. The first official population estimates of the Uganda Protectorate were made in 1900 and 1901, and gave a population at 2 million and 2.5 million respectively which were more or less accepted until the first census was carried out in the year 1911. 1.2.2 The Population Censuses 1911 - 1991 The population censuses in Uganda have been conducted in the years 1911, 1921, 1931, 1948, 1959, 1969, 1980, 1991 and 2002. The 1911, 1921 and 1931 population censuses were mainly administrative in nature, and for all the three censuses, separate enumeration procedures were made for the African and non-African population in the country. For the non-African population and for the Africans living on non-African premises, census forms were collected from their local administrative centres. The population census results of 1911, 1921 and 1931 were 2.5 million, 2.9 million and 3.5 million respectively. 3 The 2002 Population and Housing Census Economic Activity The 1948 Population Census was the first scientific census to be carried out in Uganda. This was followed by the 1959 Censuses. During the two censuses, the African Population and the non-African population were enumerated separately. The two censuses were followed by sample censuses of 10 percent and 5 percent respectively. The sample censuses were intended to provide detailed data to help in the planning processes. The first post independence census was conducted in 1969 followed by 1980 and 1991. The methodology used during these censuses was similar; people were enumerated where they spent the census night (De facto Census) and conducted simultaneously for Africans and Non-Africans. Two different types of schedules were used to collect the data. The first schedule contained limited questions and was administered at 100 percent coverage while the built in sample covered 10 percent of the rural areas and 100 percent of the urban areas and was intended to provide detailed data to aid in planning. 1.3 The 2002 Uganda Population and Housing Census The 2002 Population and Housing Census was the most comprehensive census ever conducted in Uganda. The census collected data on the demographic and socio-economic characteristics of the population; household and housing conditions, agriculture; activities of micro and small enterprises; and the community characteristics. A structured questionnaire was administered to all households and the institutional population. 1.3.1 Census Implementation The reference night (Census Night) was 12th/13th September 2002, and the th th actual enumeration was carried out between 13 and 19 September 2002. The enumeration was done by trained enumerators who canvassed the entire country and administered the questionnaires to the household head, or in his/her absence any other knowledgeable household member. Special arrangements were made to enumerate institutional, homeless and mobile populations. The census administered a standard questionnaire to all persons countrywide. For purposes of presentation of the results, the country’s 56 districts have been grouped into four regions namely Central, Eastern, Northern and Western. These are statistical groupings of districts without administrative or political status. In order to show a clearer trend, the 1980 and 1991 censuses 4 The 2002 Population and Housing Census Economic Activity data was redistributed according to the 2002 district boundaries and other lower administrative units. 1.3.2 Quality of the Census Data Quality is important aspect of data as it enhances their credibility, increases their potential use and the benefits to be derived from them. Census data quality can be compromised by poor measurement of characteristics as well as poor quality control in implementation of methodologies. In particular, quality can be compromised through inadequate coverage, use of untested methodology and procedures, inaccurate responses, high non response errors and data processing errors (editing, coding, data entry, tabulation, etc). • the 2002 census process paid attention to quality management and enhancement. In particular, special measures were taken to ensure quality census data. These included, among others: • dividing up the whole country into compact and manageable enumeration areas which can be covered by one enumerator. • producing enumeration area maps to avoid omission or double counting during enumeration • ensuring that each enumerator exhaustively canvassed the assigned area. • using simple and pre-tested questionnaires. • preparation of an Enumerators’ Instructions Manual to act as a fulltime guide to the census enumeration. • adequate publicity of the census exercise throughout the country. • adequate training of all field staff lasting for a period of 6-7 days • intensive supervision at all levels – parish, sub-county, district and national • checking and editing the census questionnaires. • 100 percent verification of all data entered into the computer. • carefully checking all data for internal consistency as well as consistency with data from other sources. • conducting a Post Enumeration Survey (PES) with the aim of measuring the magnitude, direction and sources of errors for the 2002 Census. 1.3.3 Exclusion of data from Kotido District The final results showed that Kotido District had a very high population growth rate of 9.5 percent per annum and an average household size of 6.8 persons. 5 The 2002 Population and Housing Census Economic Activity These were much higher than what was observed for the same district in 1991 and for the neighbouring districts in 2002. UBOS carried out an investigation of the Census data and found that a number of indicators for Kotido district deviated from other reliable results obtained from other studies. A deeper review of a representative sample of the census data for the district revealed that there was a deliberate duplication of households and individuals to inflate the population figures. Statistical methods were applied on the population of Kotido to come up with more reliable estimates of the population of the district as of 2002. UBOS subsequently adjusted the population of Kotido district downwards to be consistent with the results from other studies carried out around the same time. Despite this adjustment, it was not possible to have obtained detailed characteristics of the population and households. Since most of the indicators from the district were not reliable, a decision was taken to carry out the census analysis without Kotido data. Thus, the indicators shown in this report exclude the figures for Kotido district apart from indicators on population size, growth and distribution. Because of this, the analysis of population size and Growth is based on the total population of 24.2 million, while the rest of the analysis is based on the population excluding persons enumerated in Hotels and Kotido district, which was 23.8 million. 1.4 Organisation of the Report This monograph is organized into five Chapters. Chapter 1 gives an introduction which includes the background to the census, the 2002 census processes, data quality and the organization of this report. Chapter 2 presents the activity status of the population. Chapter 3 covers characteristics of working population while Chapter 4 gives the micro and small enterprises. Chapter 5 presents the policy implications and recommendations. 6 The 2002 Population and Housing Census Economic Activity CHAPTER 2: ACTIVITY STATUS 2.1 Background This chapter provides background information on the working age population and economic activities of communities obtained from the 2002 Population and Housing Census. Human capital is a prerequisite for development, hence raising its quality and productivity is recognized as a critical factor for increasing economic growth and reducing poverty levels. The key labour market indicators that are obtainable from the 2002 Population and Housing Census include; Labour force participation rate, Employment-population ratio, Unemployment rate, Youth unemployment rate and Inactivity rate. 2.1.1 Government Framework The primary objective of economic policies is to improve the welfare and the quality of life of the population of a country. One way of achieving this objective is through a broad-based economic growth which will ensure that an increasing number of persons are gainfully employed. In a bid to respond to the need for reducing poverty and improving the welfare of the people, Government has made the issue of investment and employment creation a priority. Pillar 2 of the PEAP is enhancing production, competitiveness and incomes. This Pillar shows that one of the objectives of the PEAP is promotion of employment creation, by increasing the ability of firms to be innovative and adopt new technologies that are labour-friendly and eventually develop a new economic order. The national employment policy aims at the promotion of rapid productive employment in all sectors of the economy. The policy spells out the need to analyse and understand the implications of gender roles in labour management and strategies to reduce them. 2.1.2 Sources of Data These include the National Household Surveys and the 2002 Census asked three questions relating to economic activity of individuals namely activity status, occupation and industry. The three questions relating to economic activity of individuals were asked to all persons aged 5 years and above. However, the analysis was done for 7 The 2002 Population and Housing Census Economic Activity persons in the official working age bracket of 14 to 64 years1. The Micro and Small Scale Enterprises (MSE) module collected information on nonagricultural Micro and Small Enterprises operated by a household, while the Community module collected information on the main activities carried out in the communities. 2.2 Working Age Population The working age population is divided into two distinct groups; those in the labour force (economically active) and those not in the labour force (economically inactive). The economically active population (labour force) comprises of those persons who during the last 7-days period prior to the census were either employed or unemployed (but actively looking for work). The official working age population in Uganda is 14 – 64 yearsi, which is slightly different from the internationally used definition of 15 – 64 years. The census results showed that in Uganda, there were 12 million persons of working age (see Figure 2.1). Of these, 6.3 million persons were females (52 percent) while 5.7 million were males (48 percent). 1 Report on National Workshop on Concepts and Definitions of Labour Statistics in Uganda, May 2005 8 The 2002 Population and Housing Census Figure 2.1: Economic Activity Labour Force Framework Total Population of Uganda 23.8 M Working-age Population (14-64 years) 12.0 M Below or above Working Age Population 11.8 M The Labour Force Not in the Labour Force 6.7 M 5.3 M Employed Population Unemployed Population 6.4 M 0.3 M Adapted from ILO, “Surveys of Economically Active Population, Employment, Unemployment and Underemployment, an ILO Manual on Concepts and Methods”’ 1991 2.2.1 Selected Characteristics of Working Age Population Table 2.1 shows that 85 percent of the working age population resides in rural Only 15% of the working age population resides in urban areas areas while only 15 percent reside in the urban2 areas. This was slightly higher than the national urbanization level of 12 percent of the total population. Females make up more than half (52 percent) of the working age population. The distribution of working age population by region is almost proportional to the regional distribution of the total population. The Central region had the largest share of the working age population (29 percent), followed by the Western region with 27 percent, and the Eastern region with 25 percent. The Northern region had the least proportion of the working age population of 20 percent. When Kampala is excluded from the Central region, the contribution 9 The 2002 Population and Housing Census Economic Activity of the Central region to working age population is only higher than that of the Northern region. More than 9 million persons (77 percent) of the working age population had 77% of the working age population had education below secondary education level below secondary education. Only 4 percent of the working age population had education above secondary level. This indicates that majority of the working age population lacked secondary education and is therefore of low quality (unskilled). Table 2.1: Distribution of the Working Age Population (14 to 64 Years) by Selected Characteristics Number (‘000) Percentage Male Female Both Sexes Residence Urban 1,754 14.9 14.4 14.7 Rural 10,209 85.1 85.6 85.3 751 6.3 6.3 6.3 Region Kampala Central 3,415 29.0 28.1 28.5 Central without Kampala 2,665 22.7 21.8 22.3 Eastern 2,962 24.5 25.0 24.8 Northern 2,419 20.2 20.3 20.2 Western 3,168 26.3 26.6 26.5 2,519 13.0 28.4 21.0 Education None Primary 6,720 59.3 53.3 56.2 Secondary (S1 – S3) 1,381 13.1 10.2 11.5 S4 & S5 636 6.7 4.1 5.3 S6 & Above 707 7.9 4.1 5.9 11,963 47.7 52.3 100 Uganda Figure 2.2 shows that majority of the working age population is in the age bracket 15- 19 years, while a few of them were 55 years and above. It is also observed that the proportion of the working age population decreases as age increases. 2 The 2002 census defined Urban areas as only gazetted urban areas (cities, municipalities and town councils) 10 The 2002 Population and Housing Census Figure 2.2 Economic Activity Age distribution of the Working Ag e Population 25 21.9 20 17.7 14.5 Percent 15 11.5 10 8.3 6.8 5.2 5 4.4 4 2.7 3 0 14 15 – 19 20 – 24 25 – 29 30 – 34 35 – 39 40 – 44 45 – 49 50 – 54 55 – 59 60 – 64 Age 2.2.2 Activity Status of the Working Age Population Figure 2.3 shows that more than half of the working age population was economically active while three percent were looking for work. The remaining 44 percent were outside the labour force. Figure 2.3 shows some minor variations in the distribution of the working age population by sex. Figure 2.3: Distribution of Working Age Population by Activity Status 80 60 51 36 40 38 37 23 20 11 3 2 0 Working (non-Subsistence) Working (Subsistence) Male 11 Looking for Work Female Inactive The 2002 Population and Housing Census 2.3 Economic Activity Labour Force The labour force (the economically active population) comprises of all persons aged 14 to 64 years who, during the reference period (last 7 days) were either employed or unemployed that is its part of the working age population. The employed persons refers to all persons who were employed in the week prior to the census night, and were categorized as being in; paid employment (employees) or self-employment (employers, own-account workers, members of producers' cooperatives, contributing family workers) depending on where they spent more time. The unemployed persons include all persons aged 14 to 64 years who during the reference period of the seven days prior to the census were; a. Without work that is were not in paid employment or self employment b. Currently available for work that is were available for paid employment or self employment during the last 4 weeks c. Seeking for work, but included those who did not necessarily seek work that is did not necessarily take steps to search. 2.3.1 Size and Sex Composition of the Labour Force The 2002 Census showed that the country had a labour force of about 6.7 The labour force is 6.7million persons million persons, which constituted 56 percent of the working population as depicted in Table 2.2. The proportion was slightly higher for males (53 percent) compared to that of females (47 percent). 2.3.2 Distribution of the Labour Force by Selected Characteristics Table 2.2 shows that the distribution of the labour force by residence as 86 % of the labour force resides in rural areas stated above was almost proportional to the regional distribution of the total population. Eighty six percent of the labour force resided in the rural areas. The proportion of the males in the labour force residing in urban areas was 15 percent, slightly higher than that their female counterparts of 12 percent. The distribution of the labour force by region was proportional to the regional Central region had the highest proportion of the labour force distribution of the total population. The Central region had the highest proportion of the labour force of 31 percent, followed by the Western region with 27 percent. The Northern region had the least proportion of the labour force of 19 percent. However, apart from the Central region, the proportion of the labour force is higher among females compared to their male counterparts in all the other three regions. 12 The 2002 Population and Housing Census Economic Activity About 25 percent of the labour force in 2002 had never been to school. 77 % of the labour force was below secondary education level Those with primary and 53 percent had primary level education. If a working minimum level of education necessary to function in a modern economy is fixed at senior four and above, then, only 13 percent of the labour force had that minimum qualification. Therefore, the ability for most of the labour force to compete for jobs in the formal sector was limited. Education levels in the labour force varied by sex. Thirty four percent of the females in the labour force had no education compared to 16 percent of their male counterparts. About 5 percent of the female working population had education level above senior six compared to 9 percent for their male counterparts. The United Nations defines a youth as a person aged 15 to 24 years while in 46 % of the labour force was youths Uganda; a youth is defined as a person aged 18 to 30 years. The proportion of the youths in the total labour force is 30 and 46 percent according to the international and national definitions of the youth respectively. In all instances female youth are more likely to join the labour force (32 and 48 percent) than their male counterparts (28 and 45 percent) respectively. This is likely to imply that the school drop-out rate is higher for females than males. The youth need to be planned for because many of them are leaving school and joining the labour force for the first time, and may not have any experience. It should be noted that 70 percent of the labour force were adults i.e. aged 25 to 64. The proportion was slightly higher for males (72 percent) compared to that of females (67 percent). 13 The 2002 Population and Housing Census Table 2.2: Economic Activity Distribution of the Labour Force by Selected Characteristics Percentage Background Characteristics Male Female Both sexes Number (‘000) Residence Urban 15.4 11.5 13.6 960 Rural 84.6 88.5 86.4 5,708 Regions Kampala 7.0 5.2 6.2 265 Central without Kampala 25.0 22.4 23.8 899 Central 32.0 27.6 29.9 2,051 Eastern 22.8 24.0 23.4 1,547 Northern 18.9 19.6 19.3 1,259 Western 26.3 28.8 27.5 1,810 None 15.7 34.0 24.3 1,531 Primary 56.3 49.7 53.2 3,599 Secondary (S1 – S3) Education 11.5 7.6 9.7 657 S4 & S5 7.1 3.7 5.5 377 S6 & Above 9.3 5.1 7.3 504 15 – 24 (Youth – International) 27.6 32.0 29.6 2,026 18 – 30 (Youth – National) 44.9 48.1 46.4 2,814 25 – 64 (Adults) 71.8 67.3 69.7 4,592 Uganda 53.1 46.9 100.0 6,668 Special Groups 2.3.3 Age Distribution of the Labour Force As potrayed in the Figure 2.3, the size of the labour force increases from the The labour force was at peak in the 20 to 24 year age group age group 15 to 19 years, reaches a peak at the age group of 20 to 24 years, and then it starts dropping. This means the age group of 20-24 years which is closely followed by 25-29 year age bracket have the highest percentage of the labour force. In these age brackets, many persons are completing there education and attaining certificates, diplomas or degrees. Beyond these age groups, the size of the labour force falls as age increases. About 81 percent of the labour force falls within the age group of 20 to 54 years. In Uganda, a person is expected to retire from public service at the age of 55 years. 14 The 2002 Population and Housing Census Figure 2.4: Economic Activity Distribution of the Labour Force by Age Groups 20.0 18.1 18.0 17.7 16.0 14.8 14.0 12.3 12.0 Percent 10.7 10.0 8.7 8.0 5.7 6.0 4.9 4.0 3.3 3.1 2.0 0.7 0.0 14 15 – 19 20 – 24 25 – 29 30 – 34 35 – 39 40 – 44 45 – 49 50 – 54 55 – 59 60 – 64 Age Groups 2.3.4 Distribution of the Labour force by Marital Status Majority of the labour force were currently married (67 percent) with no major variations between males and females, as shown in Table 2.3. Twenty two percent of the labour force had never married, the proportion being higher for males (27 percent) compared to their female counterparts (16 percent). However, 11 percent of the labour force was either widowed, had divorced or separated. Table 2.3: Marital Status of the Labour force Percentage Marital Status Male Female Both sexes Never married 27.4 15.5 21.9 Married 66.8 67.7 67.2 Widowed/Divorced/Separated 5.8 16.8 10.9 Uganda 100 100 100 2.4 Labour Force Participation Rate The labour force participation rate measures to what extent, which a country’s working age population is economically active (or in the labour force). It is the size of the labour force relative to the size of the working age population. The labour force participation rate provides an indication of the relative size of the supply of labour available for the production of goods and services. Table 2.4 15 The 2002 Population and Housing Census Economic Activity shows that the over all the labour force participation rate was 56 percent with no major differences by residence. The labour force participation rate for males in the rural areas was higher than that for those living in urban areas (67 percent compared to 62). The participation rate for females in urban areas was slightly higher in rural areas compared to their urban counterparts. Among the regions, Central region had the highest labour force participation rate of 60 percent while the Eastern and Northern had the lowest rate of 52 percent. This is partly attributed to the fact that several females are engaged in household domestic duties. The labour force participation rates by district are shown in Appendix Table 2.1. The results also show that persons with education level of senior six and above had the highest labour force participation rate of 71 percent. This is partly because many of them have already left school and joined the labour force. This is followed by those with no education at all of 60 percent. The labour force participation rates for persons with primary or secondary education is slightly lower than those without any education level or those who have completed senior six and above because several of these persons are still attending school, hence they have not yet joined the labour force. The labour force participation rate reaches a peak at the age group of 35 to 44 years, beyond which it starts to fall. In general, female participation rates are lower than those of their male counterparts. This is partly because many females are engaged in non-economic activities. i.e. is domestic duties like cooking at home or caring for own children. The domestic duties do not contribute to measured national income according to the System of National Accounts (SNA). 16 The 2002 Population and Housing Census Table2.4: Economic Activity Labour Force Participation Rates by Selected Characteristics Percentage Background Characteristics Male Female Both sexes Residence Urban 67.3 42.9 54.7 Rural 61.8 50.6 55.9 70.3 50.4 60.1 Eastern 69.3 58.0 51.5 47.1 60.2 52.2 Northern 57.6 47.0 52.1 Western 62.1 52.7 57.2 None 72.2 56.0 60.8 Primary 59.8 47.2 53.6 Secondary (S1 – S3) 55.3 38.4 47.5 S4 & S5 67.3 47.2 59.3 S6 & Above 75.6 63.8 71.3 Regions Central Central without Kampala Education Age groups 14 8.0 8.1 8.0 15 – 19 31.8 30.8 31.3 20 – 24 63.7 51.5 57.0 25 – 29 79.5 58.4 68.3 30 – 34 82.2 60.6 71.4 35 – 39 82.3 61.9 71.7 40 – 44 81.5 62.5 71.7 45 – 49 80.8 62.0 70.9 50 – 54 78.3 59.9 68.3 55 – 59 75.4 56.0 64.9 60 – 64 70.9 52.1 61.1 Special Groups 15 – 24 years (Youth – International) 45.4 40.4 42.8 18 – 30 years (Youth – National Definition) 25 – 64 years (Adults) 65.1 51.7 57.8 80.1 69.5 69.5 15 – 64 years 65.7 51.7 58.4 Uganda 62.6 49.5 55.7 Table 2.5 shows the five districts with highest and five districts with the lowest labour force participation rate. Kalangala has the highest participation rate of 76 percent (91 percent for males and 49 percent for females), Kaberamaido had the least participation rate of 18 percent. 17 The 2002 Population and Housing Census Table 2.5: Economic Activity Labour Force Participation Rates (LFPR) in selected districts by sex District Highest LFPR Male Female Total Kalangala 90.8 49.3 75.7 Ssembabule 76.0 67.9 71.8 Kamwenge 69.7 69.1 69.4 Mubende 73.3 61.5 67.3 Kaberamaido 24.2 11.7 17.7 Moyo 31.6 24.9 28.3 Katakwi 37.9 27.0 32.0 Nakapiripirit 53.1 19.1 35.6 lowest LFPR 2.5 Unemployment Since there are no unemployment benefits in Uganda, all able bodied persons attempt to do some work. Hence, unemployment is a state of total lack of work for those persons who were without work, willing to work but did not do anything i.e. zero hours in the last 7 days. The questions used in 2002 Census were not detailed enough to capture the levels of underemployment and therefore this information is not presented in this report. For Uganda as whole, unemployment was 5 percent (5 percent for males and 4 percent for females). Among the regions, the Central region had the highest unemployment rate (7 percent) and the least rate was exhibited in the Northern and Western regions with 3.4 percent. The high rate for Central region is partially due to the high unemployment rate for Kampala since its Unemployment was 5 % while youth unemployment rate was 7 % exclusion leads to a reduction in rate for Central region to 5.6 percent. The youth unemployment rate was 7 percent which is high compared to that for the young persons (18-30 years) which is 2 percent. The level of education has a direct relationship with the unemployment rate. Persons with primary education and no education had the lowest Unemployment Rate From table 2.6 it is seen that the lowest unemployment rate is seen among those with no schooling or with primary education (about 4 percent) while those with post secondary education had the highest unemployment rate (7 percent). This could be attributed to the fact that persons with no formal education may be willing to take on any form of employment. Among the population with post primary education, the unemployment rate was higher for women than men. 18 The 2002 Population and Housing Census Table 2.6: Economic Activity Unemployment Rate by Socio-economic Characteristics and Sex Socio–economic Characteristics Unemployment Rate Characteristics Male Female Total Residence Urban 8.9 11.6 10.0 Rural 4.6 2.7 3.7 Central 6.9 7.3 7.1 Central without Kampala 6.1 5.1 5.6 Eastern 4.8 2.5 3.7 Northern 4.0 2.7 3.4 Western 4.5 2.2 3.4 15 – 24 8.7 5.7 6.9 18-30 2.9 1.7 2.3 None 5.9 2.8 3.9 Primary 4.6 3.1 3.9 Secondary 5.7 7.1 6.2 Above secondary 6.4 8.8 7.2 Total (14 – 64 yrs) 5.2 3.8 4.6 Region Selected Age Groups Educational Attainment 2.6: Economically Inactive Population Economically inactive people are those among the working age population who during the reference period (last 7 days prior to the census) were neither employed nor unemployed and not working because of school attendance; household duties; retirement or old age; or other reasons like not interested in working, and disability etc. Economically inactive people were not engaged in any economic activity during the reference period. 19 The 2002 Population and Housing Census 2.6.1: Economic Activity Size and Sex Composition Table 2.7 shows that a total of 5.3 million persons of the population were Economically inactive females outnumber the males economically inactive. Out of these, 3.2 million were females representing 60 percent, and 2.1 million males representing 40 percent of the total economically inactive population. 2.6.2: Spatial Distribution of Inactive population Economic inactivity is more of a rural phenomenon than urban. 4.5 million of the economically inactive population resided in rural areas and only 0.8 million were in urban areas as potrayed in Table 2.7. This is because Uganda’s population is predominantly rural. In the rural areas males (87 percent) were more likely to be economically inactive than their female (84 percent) counterparts whereas the reverse is true in the urban areas where females (16 percent) were more likely to be inactive compared to their male counterparts at 13 percent. The distribution of the economically inactive persons among the regions was more or less equal. Northern region had the lowest number of the economically inactive at 22 percent and Eastern region had the highest proportion of the economically inactive population of 27 percent, accounting for 1,415,194 persons of the total. The proportion of females who are economically inactive in Kampala district is (7 percent) higher compared to that of males (4 percent). Almost 20 percent of the economically inactive population had no education at all, while 58 percent had primary level education. Females with no education at all are more likely to be economically inactive (26 percent) compared to their male counterparts (10 percent). Majority of the economically inactive population were in the age group of 15 to 19 years (34 percent), followed by those in the age group of 20 to 24 years After the age of 19, more females are economiclly inactive (17 percent). Several people in those age groups including those who are aged 14 are still attending school. Almost 62 percent of economically inactive population is below the age of 25. After the age of 19, females are more likely to be economically inactive compared to their male counterparts. 20 The 2002 Population and Housing Census Table 2.7: Economic Activity Economically Inactive Population 14 to 64 Years by Selected Background Characteristics Inactive Population Socio–economic Characteristics Number Male Both sexes Female Residence Rural Urban Region Kampala 4,501,049 87.0 83.6 85.0 794,712 13.0 16.4 15.0 302,931 4.4 6.6 5.7 1,061,280 18.6 21.0 20.0 Central 1,364,211 23.0 27.6 25.8 Eastern 1,415,194 27.5 26.2 26.7 Northern 1,159,256 22.8 21.2 21.9 Western 1,357,100 26.6 24.9 25.6 Central without Kampala Education Level No Education Primary Secondary (S1-S3) Secondary (S4 & S5) S6 & Above 987,635 9.7 25.0 18.8 3,073,308 63.5 55.2 58.6 724,730 15.7 12.5 13.8 259,225 5.9 4.3 4.9 203,123 5.2 3.0 3.9 Age 14 571,921 13.4 9.0 10.8 15-19 1,802,583 41.0 29.4 34.0 20-24 908,582 16.2 17.8 17.2 25-29 549,882 7.8 12.1 10.4 30-34 395,251 5.8 8.6 7.5 35-39 40-44 281,281 228,530 4.0 3.4 6.2 5.0 5.3 4.3 45-49 154,622 2.3 3.4 2.9 50-54 150,909 2.2 3.3 2.8 55-59 112,266 1.7 2.4 2.1 60-64 139,924 2.3 2.9 2.6 Total 5,295,761 40.3 59.7 100 2.7: Inactivity rate The inactivity rate is the proportion of the working age population that is not in The inactivity rate is lowest in the age group 35-44 the labour force. The inactivity rate was highest at the age of 14 years (92 percent) and declines with age, reaching the lowest level of 28 percent in the age groups of 35 – 39 years and 40 – 44 years. It then rises there after as shown in Table 2.8. The pattern was the same for the males and females. 21 The 2002 Population and Housing Census Economic Activity The high inactivity rates exhibited between the ages of 14 to 24 years can be explained by the fact that this is the prime age for school going. Table 2.8: Inactivity rate by age group Inactivity Rate Age Group Male Female Total 14 91.1 91.3 92.0 15-19 67.7 69.0 68.7 20-24 36.5 48.8 43.0 25-29 30.7 42.1 31.7 30-34 19.1 39.9 28.6 35-39 18.0 38.6 28.3 40-44 18.8 37.9 28.3 45-49 19.4 38.3 29.1 50-54 22 40.4 31.7 55-59 24.9 44.3 38.9 60-64 29.2 48.0 44.3 Total 37.4 50.5 44.3 2.8: Status of Economically Inactive Persons During the census the economically inactive persons were classified into several categories including household workers, fulltime students, those who were too old to work, pensioners, etc. From Table 2.6, household work (which mostly includes household chores like cooking, fetching water, washing utensils and clothes, cleaning house and compound, etc.) featured as the prominent reason for not being economically active among persons aged 14 to 64 years of age (2.6 million) followed by those attending school i.e. full time students (2.1 million). This accounted for 48 percent and 39 percent of the total economically inactive population respectively. The proportion of women engaged in household work (61 percent) was significantly higher (slightly more than twice) than that for men (29 percent). This could be attributed to the cultural tendencies in our society, that housework is a domain of females. The proportion of males attending school (full time students) is far much higher for males (54 percent) than that of females (29 percent). The proportion of economically inactive persons that is of concern is that of people not working and not looking for work who constitute (10 percent). Less than one percent of the economically inactive persons were either retired or pensioners. 22 The 2002 Population and Housing Census Table 2.9: Economic Activity Reasons for not working Reason Number Household work 2,555,392 28.8 61.4 48.3 Full time student 2,052,385 53.7 28.7 38.8 Not working and not looking for work 513,934 13.9 6.9 9.7 Too old or too young 107,593 1.7 2.2 2.0 Retired/pensioner 15,815 0.5 0.1 0.3 Others 50,642 1.7 0.6 1.0 5,295,761 100 100 100 Total 2.9: Male Female Both sexes Economic activity at Community Level The census collected information about the most dominant economic activities of the community. This was based on the perception of the opinion leaders in the community. Majority of the persons in the communities were engaged in crop farming. Majority of the residents in communities are engaged in crop farming-87% Table 2.10 shows that 4 out 5 of the communities were engaged in crop farming, closely followed by animal rearing. The two activities collectively accounted for 90 percent of the communities’ economic activities. Eight percent of the communities were in employment income in the Central region compared to only 1 percent in the Northern region. Table 2.10: Economic Activity Crop farming Economic Activities of Communities Central without K’la Kampal a Central Easter n N W Ugand a 81.8 0.1 75.7 90.0 88.6 89.9 86.6 Animal rearing Employment income Trading in agricultural Produce 5.2 1.7 4.8 1.7 4.1 3.5 3.5 4.3 64.2 7.9 2.1 1.2 1.8 3.0 3.3 9.3 2.8 2.3 2.1 1.9 2.3 Fishing Trading in non-agricultural products 2.2 1.0 4.0 1.6 1.4 0.9 1.8 2.2 19.4 3.5 1.5 1.2 1.4 1.8 Other 1.1 4.2 1.3 0.9 1.4 0.6 1.0 Total 100.0 100.0 100.0 100.0 100.0 100.0 100.0 Number 8,389 687 9,076 10,274 Note: C=Central - E=Eastern - N=Northern - W=Western 11,055 12,799 43,204 23 The 2002 Population and Housing Census Economic Activity 2.10: Summary The working age population (14 to 64 years) is about 12 million persons of which 6.3 million (52 percent) are female. It was found that 85 percent of the working age population resided in rural areas while only 15 percent are in urban areas. There were 6.7 million persons who were economically active (the labour force) of which 53 percent were females and 86 percent of them were was residing in rural areas. The total number of persons not in the labour force (not economically active) were 5.3 million persons representing 44 percent of the total working age population. The overall inactivity rate was therefore about 44 percent. This rate was higher for females at 51 percent than males at 37 percent. The Northern and Eastern regions had the highest inactivity rate of 48 percent. Crop farming was a predominant activity of communities in Uganda followed by animal rearing and employment income. 24 The 2002 Population and Housing Census CHAPTER 3: Economic Activity CHARACTERISTICS OF THE WORKING POPULATION 3.1 Background The working population refers to persons who are gainfully employed or otherwise occupied with production. In Uganda, the working population refers to persons aged 14-64 years who were either engaged in work for pay or profit during the last seven days prior to the census; or had formal job attachment during the same reference period or were unpaid family workers. Therefore, the working population refers to the employed labour force. The labour force comprises of persons who during the past 7 days, prior to the census were either employed or unemployed but looking for work. The census showed that the country’s labour force aged 14-64 years was about 6.7 million persons. The working population underpins the high rates of economic growth that Uganda has experienced over a decade following steadfast implementation of macroeconomic stabilization policies. As a means of ensuring that the benefits of economic growth reach the poor, the Poverty Eradication Action Plan (PEAP) was formulated as the overall national planning framework. The PEAP is being implemented through sector policies, plans and programmes. One of the sector plans that directly address the challenges faced by the working population is the Social Development Sector Strategic Investment Plan (SDIP), which targets such social development concerns as inequity, inequality, exclusion, unemployment and low productivity. More specifically, it maps out interventions designed to create an enabling environment for increasing employment opportunities and productivity for improved livelihoods and social security for all, especially the poor and vulnerable. 3.2 Status in Employment Status in employment refers to wage and salaried workers (employees), the self employed (employers and own account workers) and unpaid family workers. Such information provides insight into the socio economic status of the society. An economy with a high proportion of its working population as paid employees signifies advanced economic development. A big proportion of own account workers can be an indication of low development in the formal 25 The 2002 Population and Housing Census Economic Activity economy and high reliance on the informal sector. A situation where large shares of the employees are unpaid family workers portrays low development, limited job creation, widespread poverty and often a largely rural economy. Table 3.1 shows information on Status of Employment for selected countries. The status of the working population is to a large extent influenced by such factors as rural/urban divide, geographical location, educational levels, sex and age. Self-employment is in many instances a euphemism for underemployment, and is therefore likely to feature more where and for whom employment opportunities are scarce. Table 3.1: Employment Status for selected countries Country Year Wage & salaried workers (employees) (%) Employers (a) (%) Ownaccount workers (b) (%) Total selfemployed workers (a+b) Contributin g family workers (%) Austria 2001 87.2 5.4 5 10.4 2.4 Botswana 2000 69.7 13.2 - - 17.1 France 2001 91.1 - - 8.9 0 Ghana 1992 16.9 - - 81.2 - Japan 2001 83.7 2.7 8.1 10.8 5.1 Kenya 1994 20.8 - - 17.6 - Netherlands 2001 89 - - 10.4 0.6 New Zealand 2001 80.1 7.2 11.8 19 0.9 South Africa 2002 80.7 14.8 3.4 18.2 1 Sweden 2001 90 - - 9.7 0.3 UK 2001 88.4 - - 11.2 0.3 Uganda 2002 16.0 0.4 42.6 Source: Key Indicators of Labour market Third Edition-ILO Dash (-) indicates figures are not available 43 41 Table 3.2 shows that 43 percent of the working population is self-employed. This high percentage is an indication of low growth in the formal economy, thus a high rate of job creation in the informal economy. This was followed by unpaid family workers. A large share of unpaid family (41 percent) also indicates a situation of poor development, minimal job generation growth, widespread poverty and large rural economy. The share of the wage- employed population is low at about 16 percent. This observed small proportion of employee’s category in the economy indicates slow economic development. Central region had a notable percentage of working population who worked as employees compared to other regions. Given that a large share of employee signifies high level of development, this explains low poverty in the central region. 26 The 2002 Population and Housing Census Economic Activity Table 3.2 also shows that the working population who had attained higher 71 % of paid employees had above secondary education levels of education has higher chances of getting paid employment jobs; the results have revealed that 71 percent of paid employees have above secondary education. Lack of formal education is most likely to consign people to being unpaid family workers while completion of primary education concentrates people in self-employment while secondary and post-secondary education enables relatively larger numbers to get paid employment. Table3.2: Percentage distribution of employed persons by Selected Characteristics Self Unpaid Employed Family Paid All Worker Employee Categories Sex Male Female 60.3 18.1 21.6 100.0 24.1 66.1 9.9 100.0 Residence Urban 41.2 8.7 50.1 100.0 43.6 45.6 10.8 100.0 44.7 27.3 27.9 100.0 44.4 45.1 10.5 100.0 43.0 47.7 9.3 100.0 41.0 46.2 12.8 100.0 40.0 54.4 5.6 100.0 46.5 43.3 10.3 100.0 45.2 24.2 30.6 100.0 23.5 5.9 70.6 100.0 15-24 24.4 60.1 15.5 100.0 18-30 35.3 46.7 18.0 100.0 14-64 43.3 40.6 16.1 100.0 25-64 51.7 31.9 16.4 100.0 Rural Region Central region Eastern region Northern region Western region Educational Attainment No Formal Education Primary Secondary Above Secondary Special age groups Uganda 43.3 40.6 16.1 100.0 Note: special age groups: 15-24- youth (International), 18-30- youth Constitutional, 25-64adults, 14-64- labour force From Table 3.3, it is observed that on the overall, the majority of the working One in every 6 working persons were employees population was self employed (44 percent), followed by unpaid family workers (41 percent), with the remaining 15 percent being Paid employees. The low proportion of paid employee was because of the large proportion of the 27 The 2002 Population and Housing Census Economic Activity working population who were either subsistence farmers or unpaid family worker. Among the working females, the majority (66 percent) were unpaid family workers while the male working population dominated the self employed category. Only 9 percent of the working females were in paid employment compared to 20 percent for their male counterparts. Paid employees were more likely to be found in the Central and Western regions compared to the Eastern and the Northern regions. This is reflective of the level of economic development taking place in those regions. Table 3.3: Percentage Distribution of the Working Population by Status in Employment and Socio-Economic Characteristics Socio-Economic Characteristics Self Employed Unpaid Family Worker Paid Employee Total Sex Male 59.9 19.8 20.3 100 Female 24.9 65.8 9.4 100 Residence Urban 41.3 9.1 49.6 100 Rural 43.9 46.0 10.1 100 45.4 28.0 26.6 100 Central Exc. Kampala City 47.4 33.9 18.7 100 Eastern 45.1 45.1 9.8 100 Northern 42.4 49.0 8.6 100 Western 41.1 46.8 12.1 100 No Formal Education 40.0 55.0 5.0 100 Primary 46.8 43.2 10.0 100 Secondary 45.7 24.0 30.3 100 Above Secondary 24.1 6.1 69.8 100 14 – 19 13.5 73.8 12.6 100 20 – 24 31.5 51.1 17.4 100 25 – 39 46.9 34.1 19.0 100 40 – 64 59.7 28.3 12.1 100 Uganda 43.6 41.3 15.2 100 Region Central Education Attainment Age Groups The level of productivity and earnings and, hence the access to remunerative employment, of an individual is positively related to his/her level of education. Table 3.4 shows that 78 percent of all the working population had either no 28 The 2002 Population and Housing Census Economic Activity formal education or were below secondary education. This means that creating the demand for jobs alone without having a labour force with the necessary skills to match the available jobs opportunities may not solve the under-employment and unemployment problem in the country. Table 3.4 reveals that of 76 percent of the unpaid family workers were females. Only 29 percent of all persons in paid employment were females. Eastern and Northern Regions had the least percentage of paid employees Among the working females only 10 percent are in paid employment (Table 3.4). Paid employees are more likely to be found in central and western regions compared to the eastern and northern regions. This may be a reflectiion of the level of economic development taking place in those regions Table 3.4: Working Population Percent distribution by employment categories and Socio-economic characteristics Self Employed Unpaid Family Worker Paid Employee All Categories Sex Male 74.0 23.7 71.3 53.1 Female 26.0 76.3 28.7 46.9 Urban 12.9 2.9 42.2 13.6 Rural 87.1 97.1 57.8 86.4 Central 30.9 20.1 51.9 29.9 Eastern 24.0 26.0 15.2 23.4 Northern 19.1 22.6 11.1 19.3 Western 26.0 31.3 21.8 27.5 22.4 32.6 8.5 24.3 Primary 57.1 56.7 33.9 53.2 Secondary 17.3 9.9 31.5 16.5 3.2 0.9 26.1 6.0 100.0 100.0 100.0 100.0 Residence Region Educational Attainment No Formal Education Above Secondary Uganda 3.2 Industry Industry is defined as the type of activity carried out by the enterprise where a person is working. Industry in the 2002 Census was categorized using the International Standard of Industrial Classifications (ISIC) Revision III. 29 The 2002 Population and Housing Census The agriculture sector employs 73 % of the working population Economic Activity Agriculture employed 73 percent of the working population (81 percent of the females and 67 percent of the males). This is a reflection of Uganda’s low level of overall economic performance. Uganda’s predominantly agricultural economy is most likely to be generally backward. Manufacturing employs a paltry 2.3 percent with the ratio of men twice as high as that for women. All industries were dominated by men except the agricultural sector, which dominated by women and is the least dynamic and lowest paying sector. Table 3.5: Percentage Distribution of the Working Population (14 – 64 Years) Industry and Sex Industry Male Agriculture Female Both sexes 66.5 81.1 73.3 Wholesale and Retail Trade 5.5 4.7 5.1 Education 3.6 2.8 3.2 Manufacturing 3.1 1.5 2.3 Transport, Storage and Communication 3.5 0.2 1.9 Fishing 2.9 0.5 1.8 Public Administration 2.7 0.8 1.8 Construction 3.1 0.1 1.7 Others 12.0 10.2 9.5 Total 100 100 100 Figure 3.1 shows that the majority of those who were in employment (77 77 % of the working population were in agriculture sector percent) were in agriculture (the primary sector). The census findings matched with those of earlier surveys in indicating that the majority of the work force is engaged in subsistence farming. This is largely due to the fact that there have been very slow shifts in the employment patterns from agricultural to industry and to services as is the trend in developed economies. The large share of the primary sector reflects a stagnant share of wage employment and a high proportion of contributing family workers who are widespread in the rural sector in Uganda. 30 The 2002 Population and Housing Census Figure 3.1: Economic Activity Percentage distribution of employed persons by Sector of employment and sex 90 77.4 76.7 80 77.05 70 60 50 40 30 19.8 17.6 20 10 18.7 5.7 2.9 4.3 Male Female Both Sexes 0 Agriculture Manufacturing Services Table 3.6 illustrates that for developed countries (such as Australia, Canada Denmark, Taiwan, China) agriculture contributes less than 10 percent to the total employment, while for less developed countries (such as Angola, Sudan and Uganda) over 70 percent are employed in agriculture. Table 3.6: Employment by sector for selected countries Country Year Agriculture (%) Uganda 2002 77.1 Angola 1990 Sudan 1990 Industry (%) Services (%) 4.3 18.7 74.5 8 17.4 69.5 8.5 22.1 Kenya 1999 18.6 19.5 61.9 Korea, Republic 2001 10.3 27.4 62.3 Taiwan, China 1997 9.6 28.5 61.9 Australia 2001 4.9 20.9 74.1 Denmark 2001 3.3 25.4 70.9 22.7 74.4 Canada 2001 2.9 Source: Key Indicators of Labour market Third Edition-ILO 3.4 Occupation Occupation refers to the actual work that a person does at his/her place of work whether in paid employment, unpaid family worker or self-employment. The occupations were classified according to the International Standard Classification of Occupations (ISCO) 1988 but were customised to the Uganda situation. 7 in every 10 employed persons were subsistence agricultural workers Table 3.7 shows the distribution of the workforce by occupation. It shows that the majority of the working population (71 percent) was in subsistence agriculture and fisheries workers. The other significant categories are Service 31 The 2002 Population and Housing Census Economic Activity and Sales Workers, Craft Related Workers and the Associate Professionals. The remaining groups all contributed less than 5 percent of the total work force. In the urban areas the share of subsistence agriculture was less dominant (12 percent) compared to 80 percent for the rural areas. A sizeable percentage of workers in the workforce in urban areas were in service and sales occupation (34 percent) or engaged in Elementary occupations (12 percent). The Gender bias against females was manifested in all occupations apart from Clerks, Agricultural and Fishery Workers as well as Service Workers, Shop Attendants and Market Sales Workers. It should be noted that these areas are all among the least paying and most menial which is characteristic of many developing economies. 32 The 2002 Population and Housing Census Table 3.7: Economic Activity Percentage Distribution of the Working Population (14 – 64 Years) by Major Occupational Group and Sex Major Occupation Rural Categories M Urban F T M 16.7 12.3 Total F T M F T 87.8 79.9 63.1 79.9 71.0 Subsistence Agricultural Worker 9.5 72.6 Service Workers, Shop and Market Sales Workers 25.8 45.9 33.7 5.7 5.4 5.6 8.8 9.9 9.3 Associate Professionals 13.0 15.1 13.8 5.7 3.2 4.5 6.8 4.5 5.7 Elementary Occupations 13.3 10.4 12.1 6.2 1.7 4.1 7.3 2.7 5.1 15.4 1.3 9.9 3.7 0.4 2.1 5.5 0.5 3.1 14.2 0.7 8.9 3.0 0.1 1.6 4.7 0.1 2.5 Workers 0.6 0.5 0.5 1.8 0.8 1.3 1.6 0.8 1.2 Professionals 4.8 3.5 4.3 0.6 0.2 0.4 1.2 0.6 0.9 Clerks 1.8 4.5 2.9 0.3 0.3 0.3 0.6 0.7 0.6 Officials/Administrators 1.7 1.4 1.5 0.3 0.1 0.2 0.5 0.2 0.4 Total 100 100 100 100 100 100 100 100 100 Craft and Related and Machine Workers Plant Operators and Assemblers Market Oriented Agricultural and Fishery Managers/Senior M=Males, F= Female, T= Both sexes The census indicates that agriculture was the dominant economic activity in the country. The sector provided employment for 72 percent of the labour force. However, most of the agriculture is of subsistence nature. Subsistence farming is usually associated with, risk and uncertainty (especially when based on seasonal rains) and low productivity. It is generally characterised by engagement in crop production, stock rearing and associated activities mainly for ‘own consumption’. Figure 3.2 shows that 69 percent of the employed persons were engaged in subsistence agriculture. There were more subsistence agricultural workers among the females (80 percent) compared to the males (63 percent). About 79 percent of the working population in rural areas was engaged in subsistence farming and Central region had the least percentage of subsistence farmers in comparision to others. 33 The 2002 Population and Housing Census Economic Activity The level of education is directly related to one being engaged in subsistence or non subsistence economic activity. Overall, 86 percent of working persons with no formal education were engaged in subsistence agriculture compared to 12 percent for those who had attained above secondary level of education. Figure 3.2: Proportion of the Working Population (14 – 64 Years) who were engaged in Subsistence farming 100 80 Percent 80 69 79 76 82 86 76 75 63 51 60 44 40 12 20 12 . Ed u P c Se rim c o ary nd a Te r y rti ar y o N C en t Ea ral st N ern or th W ern es te rn rb an R ur al U M a Fe l e m al e U ga . nd a 0 Characteristics 3.7 Summary Uganda’s working population was 6.4 million persons, with 70 percent of this population predominantly in agriculture. Women are predominantly engaged in subsistence agriculture and elsewhere as unpaid family workers. Professional, managerial and other top paying decision-making level jobs were dominated by males. The Ugandan labour force consists of persons aged 14 to 64 years who were either employed (in paid employment, selfemployed and unpaid family workers) or unemployed (without work and available for work). It is estimated that there were 12 million Ugandans in working age group, of which 6.4 million were in the labour force. More females (52 percent) were either working or looking for work as compared to males but they were less likely to be employed. Most of the labour force was rural based. Participation levels by sex showed higher participation rates among women in rural than those in urban areas. The largest portion of the labour force was found in the Central region. Persons with out formal education or primary education are more likely to find jobs compared to those with secondary education and above. 34 The 2002 Population and Housing Census Economic Activity About 69 percent of the employed persons were subsistence farmers, 80 percent were female, compared to 61 percent of the employed males. The census findings showed that about 9 in every 10 persons without formal education were more likely to be in subsistence agriculture with the percentage of subsistence farmers reducing as education levels increase. 35 The 2002 Population and Housing Census Economic Activity This page is blank 36 The 2002 Population and Housing Census Economic Activity CHAPTER 4: MICRO AND SMALL SCALE ENTERPRISES 4.1 Background A business enterprise is an economic activity that is operated with the view of making profit. The number of persons engaged in the activity was used to classify an enterprise. An enterprise with 1 to 4 persons was classified as micro scale, while one with 5 to 9 persons was classified as a small scaleenterprise. The 2002 Census included a module on Micro and Small scale Enterprises (MSEs). The module solicited information on the type of business, ownership, employment and premises of the MSE operated by a household member in the same district. This excluded enterprises engaging in primary agricultural production. The information collected was linked to household members, and is therefore associated with errors of omission (for persons not enumerated in households) or duplication (where one MSE is operated by more than one person and hence recorded more than once). Past efforts to collect data on MSE include: • Survey of Industrial Production (by the Statistics Department)- 1963 • Annual Surveys of Industrial Production (by the Statistics Department)- 1964 to 1969 and 1971 • Survey of Industrial Production (by Statistics Department)- 1970 • Census of Business Establishments (COBE)-1990 • Integrated Household Survey (IHS) – 1991/2 • Uganda Business Inquiry (UBI)- 2001/2002 • Uganda National Household Survey (UNHS) 2002/3 4.1.1 Objectives of the 2002 Census MSE module The primary objective of the MSE module was to give an idea of the magnitude of the sector. The data provides baseline information for many studies and related surveys. The module was to provide a basis for constructing an appropriate sampling frame that could be utilized in a detailed household based business enterprise survey and other related surveys. 37 The 2002 Population and Housing Census 4.2 There were over 1 million Micro and Small Enterprises Economic Activity Distribution of MSEs In the 2002 Census, a total of 1.1 million household based micro and small business enterprises were recorded. Of these over one million (97 percent) were Micro and 36,000 were small enterprises. Table 4.1 shows that most of the MSEs were found in urban areas (99.7 percent). The Central region had the highest share of MSEs (35 percent), followed by Eastern Region with 25 percent. The Western region had 23 percent while Northern Region had the least share (17 percent). Table 4.1: Spatial Distribution of MSEs by Residence and Region Size of Enterprises Micro Small Enterprises Enterprises Total All MSEs Percent Rural 3,500 151 3,651 0.3 Urban 1,012,837 35,580 1,048,417 99.7 Residence Region Central 355,269 6,621 371,890 35.3 Central (Excl Kampala) 256,959 11,018 267,977 5.5 Eastern 260,261 7,465 267,726 25.4 Northern 170,387 4,307 174,694 16.6 Western 230,420 7,338 237,758 22.6 1,016,337 35,731 1,052,068 100 Total 4.2.1 Distribution of MSEs by District Table 4.2 shows that the largest number of MSEs constituting 10 percent was found in Kampala district and this could be attributed to the fact that it is urban. Wakiso had the second largest share of enterprises (5 percent). Mbarara district had the highest percentage in the western region while Arua district had the highest percentage in Northern Region. In the Eastern Region, Mbale district had proportionately more business enterprises compared to other districts. At the other end of the scale, as shown in Table 4.3, Nakapiripirit, Pader and Yumbe had the least proportion (less than 1 percent) of business enterprises in Uganda. Appendix Table 4.1 shows the distribution of MSE’s by District. 38 The 2002 Population and Housing Census Table 4.2: Economic Activity Districts with the highest Proportion of MSE’s in Uganda DISTRICT Percentage of Enterprises Kampala 9.9 Wakiso 4.7 Mukono 4.1 Mbarara 4.0 Arua 3.8 Masaka 3.7 Mbale 3.4 Iganga 2.9 Bushenyi 2.8 Rakai 2.8 Apac 2.7 Lira 2.6 Table 4.3: Districts with the Least Proportion of MSE’s in Uganda DISTRICT Percentage of Enterprises Nakapiripirit 0.1 Pader 0.4 Yumbe 0.5 Kisoro 0.5 Kaberamaido 0.5 Ssembabule 0.6 Kalangala 0.6 Kitgum 0.6 Bundibugyo 0.6 Nakasongola 0.6 Kanungu 0.6 4.2.2 Distribution of Enterprises by Industry Table 4.4 shows that nearly two thirds (63 percent) of the MSEs were More than half of the MSEs were engaged in Trade engaged in Trade, followed by the Manufacturing sector with 20 percent. Six percent of the enterprises were engaged in the Transport, Storage and Communication and the other sectors contributed less than 12 percent. 39 The 2002 Population and Housing Census Table 4.4: Economic Activity Distribution of MSEs by Industry Number of Type of Industry Enterprises Wholesale & Retail Trade, Motor Vehicle Repairs Per Percent Distribution Micro Small Total 665.2 63.7 49.2 63.2 205.0 19.3 25.5 19.5 66.0 6.4 2.4 6.3 Community & Social services 26.0 2.5 2.7 2.5 Hotels and Restaurants 24.4 2.2 5.5 2.3 Construction 16.8 1.5 4.8 1.6 Education 13.3 1.2 2.7 1.3 Others 35.4 3.2 7.2 3.4 100 100 100 Manufacturing Transport, Storage and Communication Total 1,052.1 Trade includes wholesale, retail, motor vehicle repairs 4.3 Employment in MSEs The employment in MSEs includes employees and working proprietors. Table 4.5 shows that the MSEs were employing a total of 1.7 million persons countrywide. The distribution of the MSE employees is not even across the regions. Close to two in every five persons employed in MSEs were females. Nearly half (48 percent) of persons engaged in enterprises in Northern region were women implying that women had almost equal chances to those of men of being engaged in enterprises in Northern region. In other regions, the percentage of women engaged in enterprises was very close at 38, 36 and 39 percent for Western, Eastern and Central region respectively. Table 4.5: Employment of MSEs by Residence and Region Number of Employees Share of National Total Percentage of Female 6,175 0.4 37.2 1,694,453 99.6 39.8 Central 637,230 37.5 39.7 Central (Excl Kampala) 456,728 26.9 39.0 Eastern 421,986 24.8 36.2 Northern 265,282 15.6 48.3 Western 376,130 22.1 37.9 1,700,628 100 39.8 Location Residence Rural Urban Region Total 40 The 2002 Population and Housing Census 4.3.1 Economic Activity Persons Engaged in MSEs by Industry Table 4.5 shows that in the industry of Micro enterprise, most persons were engaged in the Wholesale & retail trade, motor vehicle repairs industry and this was followed by the manufacturing Industry. More than half of the persons engaged in hotel and restaurant industry together with the Private Household with Employed Persons industry were females in the micro type of enterprise. The small scale enterprises like wise had most persons employed in the Wholesale & retail trade, motor vehicle repairs industry. This was followed by Manufacturing and Hotel & Restaurant industries. However, the Hotel & Restaurant industry employed more females compared to either the Wholesale & retail trade, motor vehicle repairs industry or the Manufacturing industry. Generally, Wholesale and Retail Trade Industry had the highest number of persons engaged (over 1 million) in MSEs. The Hotel & Restaurant industry employed more females than all other industries, while the Transport, Storage and Communication, Construction and Fishing industries employed the least proportion of females, each having less than 10 percent of the persons engaged as females. 41 The 2002 Population and Housing Census Table 4.5: Economic Activity Distribution of Persons Engaged in MSEs by Industry Micro Industry 1.Agriculture, Hunting and Related Service Small Total Numbe r % Female Numbe r % Female Numbe r % Female 10,493 29.5 4,647 38.5 17,375 2. Fishing 9,339 6.2 3,585 11.3 18,417 7.2 3. Mining and Quarrying 5,689 30.3 1,837 34.7 8,989 31.2 232,455 46.7 54,472 36.5 347,777 45.1 4. Manufacturing 5. Electricity, Gas and Water supply 6. Construction 7.Wholesale & retail trade, motor vehicle repairs 8. Hotels & Restaurants 9. Transport, Storage and Communication 10. Financial Intermediation 11. Real Estate, renting and business activities 12. Public Administration, Defence, Social Security 13. Education 14. Other Community, social services 15. Private Household with Employed Persons 16.Extra-territorial organizations and bodies Total 4.3.2 31.9 312 21.0 77 23.4 196 21.9 17,972 5.4 10,527 10.9 35,541 7.1 776,643 41.3 104,484 39.3 1,042,7 85 41.1 28,125 68.6 11,887 63.3 51,634 67.4 71,660 5.6 5,236 23.6 85,323 6.7 832 21.1 400 36.3 1,053 26.9 12,345 25.4 4,251 32.6 18,451 27.1 1,782 30.9 1,042 41.6 3,181 34.4 15,288 39.8 6,157 52.6 24,111 43.1 30,740 46.5 5,728 51.2 44,639 47.1 820 52.3 184 55.4 1,142 52.8 3 1,214,4 98 33.3 6 66.7 55.6 40.0 214,520 38.2 9 1,700,6 23 39.8 Ownership of MSEs by Industry Similar to persons engaged, Table 4.7 shows that ownership of enterprises was largest in Wholesale and Trade industry regardless of the type of MSE and it was followed by the Manufacturing industry. The industries of Electricity, Gas and Water supply, Hotel & Restaurant, Extra-territorial organisations and bodies, and Manufacturing had more than half of their owners as females. The least proportion of female owners were in the Industries of Construction, Transport, Storage and Communication, and in the Fishing Industry. Each of these had less than 10 percent of owners as females. 42 The 2002 Population and Housing Census Table 4.7: Economic Activity Ownership of MSEs by Industry Micro Industry 1.Agriculture, Hunting & Related Service 2. Fishing 3. Mining and Quarrying Small Total Numbe r % Female Number % Femal e Numbe r % Femal e 10,493 31.6 1,622 34.6 12,115 32.0 9,339 7.1 841 14.1 10,180 7.7 5,689 31.0 688 27.2 6,377 30.5 232,455 51.5 17,482 36.5 249,937 50.5 312 73.4 28 21.4 340 69.1 17,972 5.8 3,169 9.5 21,141 6.4 776,643 40.9 35,404 36.4 812,047 40.7 8.Hotels & Restaurants 9.Transport, Storage & Communication 10. Financial Intermediation 11. Real Estate, renting & business activities 12. Public Administration, Defence, Social Securit 28,125 64.7 3,080 53.0 31,205 63.6 71,660 7.0 1,671 22.7 73,331 7.3 832 34.3 194 33.0 1,026 34.0 12,345 25.4 1,567 26.8 13,912 25.6 1,782 24.6 350 33.1 2,132 26.0 13. Educatio 14.Other Community, social services 15. Private Household with Employed Persons 16. Extra-territorial organisations & bodies 15,288 35.1 1,825 40.1 17,113 35.6 30,740 44.8 1,939 47.3 32,679 45.0 820 48.9 62 43.5 882 48.5 3 1,283,7 43 33.3 6 66.7 55.6 40.4 69,928 35.4 9 1,284,4 26 4. Manufacturing 5. Electricity, Gas and Water supply 6. Construction 7.Wholesale & retail trade, motor vehicle repairs Total 4.4 40.1 Summary The Micro and Small scale Enterprises in the country were 1.1 million employing about 1.7 million people. Central region had the highest percentage of MSEs (35 percent) with Kampala alone having 10 percent. The Northern region had the highest share of women employed in MSEs. The majority of the MSEs were in the Wholesale & Retail Trade, Motor Vehicle Repairs industry. The Hotel & Restaurant industry employed the most females than all other industries, while the Transport, Storage and Communication, Construction and Fishing industries employed the least proportion of females, each having less than 10 percent of the persons engaged as females. 43 The 2002 Population and Housing Census 44 Economic Activity The 2002 Population and Housing Census Economic Activity CHAPTER 5: POLICY IMPLICATIONS AND RECOMMENDATIONS Creation and sustainability of an enabling working environment Being able to work is the main asset and potential income source for both the poor and non poor. Improving the labour conditions at work places and increasing the opportunities for more jobs will reduce poverty. As such, there is an urgent need to put in place an explicit Employment Policy to set guidelines for employers and employees in order to improve the work environment. Rapid expansion of non-farm activities, particularly in the rural areas is required in order accelerate labour absorption. Relatively large and wagelabour based enterprises are needed where the wage income is higher than the return from both farm and self-employment activities. The access to nonfarm income is particularly important to raise both household income of the poor. It is critical to create better employment opportunities in rural areas, not only to reduce rural poverty, but also to slow down on rural-urban migration. This will require an increase in off-farm activities, the need for appropriate skills and a rise in productivity from farm activities. Important measures needed to enhance opportunities in the Informal sector include developing lending mechanisms, which can meet the credit needs for operators which are often without collateral; improving accessibility to product and input markets; providing entrepreneurs with basic business skills, and streamlining the institutional environment. Commercialisation of agriculture necessitates conducive land tenure systems and optimal size farms both requiring movement of surplus and underemployed working population into other sectors. This requires deliberate land reform policies as well as incentives for expansion of the non-agricultural sectors. Affirmative action for women needs strengthening beyond the political structures to the grassroot level so that women and girls should have equal access to education and are also supported to own and inherit assets and are able to ascend to managerial and professional positions in the workforce. 45 The 2002 Population and Housing Census Economic Activity It is recommended that government should step up the industrialization drive to be able to absorb the increasing population through job creation and other related employment opportunities that accompany such shifts. 46 The 2002 Population and Housing Census Economic Activity LIST OF REFERENCES Report on National Workshop on Concepts and Definitions of Labour Statistics in Uganda, May 2005 “Surveys of Economically Active Population, Employment, Unemployment and Underemployment, an ILO Manual on Concepts and Methods”’ 1991 MFPED 2004: The Poverty Eradication Action Plan 2004/5- 2007/8 Uganda Bureau of Statistics (2005): 2002 Uganda Population and Housing Census, Main Report. 47 The 2002 Population and Housing Census Economic Activity GLOSSARY OF CENSUS TERMS Economic Activity - Work which involves the production of goods and/or services for sale or exchange and production of certain products for own consumption. This excludes household duties like caring for the sick, cooking food, collecting children from school, fetching water, etc. Working Population – All persons aged 5 years and above whose Activity Status was paid employee, self employed or unpaid family worker. Looking for Work – Persons aged 5 years and above who were without work and had taken specific steps in a specified recent period to seek paid employment or self-employment. Economically Active Population – All persons aged 5 years and above who were either working or actively looking for work. Unpaid Family Workers – Members of the household who work in an enterprise operated by the household without pay or profit. Household Worker – A person aged five (5) years or more of either sex involved in housework and who is not paid for the chores he/she performs. Economically Inactive Population - Refers to all persons aged 5 years and above who were not engaged in economic activities during the reference period (seven days prior to the census date) and did not look for work. These include household domestic workers, the sick, those who are too old or too young to work, pensioners or rentiers, those not working and are not interested in work. Industry – The type of economic activity carried out by an enterprise where a person is working, irrespective of what work the person actually does there Occupation – The actual work that an individual does at the place of work. This is irrespective of the main activity that the organization he/she is involved in. Subsistence Farming – includes traditional agriculture (crop growing), livestock rearing or herding, fishing, hunting and gathering. Subsistence farmers produce primarily for own consumption but may sell some of the produce. 48 The 2002 Population and Housing Census Economic Activity ANNEX TABLES 49 The 2002 Population and Housing Census Table A1.1: Economic Activity Labour Participation Rates by District and Sex Working Age Population (14-64) Labour Force Population (14-64) Male Female Total Male Female Total 5,702,749 6,261,112 11,963,861 3,568,717 3,099,383 Kalangala 15,533 8,904 24,437 14,107 Kampala UGANDA Labour Force Participation Rate Male Female Total 6,668,100 62.6 49.5 55.7 4,389 18,496 90.8 49.3 75.7 59.7 Central 358,691 392,150 750,841 264,879 183,031 447,910 73.8 46.7 Kiboga 57,160 54,499 111,659 40,986 31,646 72,632 71.7 58.1 65.0 Luwero 108,257 115,321 223,578 73,844 63,707 137,551 68.2 55.2 61.5 Masaka 176,626 196,323 372,949 117,782 102,976 220,758 66.7 52.5 59.2 92,388 95,813 188,201 60,951 50,085 111,036 66.0 52.3 59.0 Mubende 163,913 167,913 331,826 120,127 103,255 223,382 73.3 61.5 67.3 Mukono 197,073 201,743 398,816 132,604 84,150 216,754 67.3 41.7 54.3 30,425 30,297 60,722 21,520 14,695 36,215 70.7 48.5 59.6 Mpigi Nakasongola Rakai 110,206 120,648 230,854 70,772 64,128 134,900 64.2 53.2 58.4 Ssembabule 42,668 45,369 88,037 32,440 30,799 63,239 76.0 67.9 71.8 Kayunga 62,531 72,314 134,845 38,533 35,890 74,423 61.6 49.6 55.2 240,164 258,509 498,673 175,330 118,601 293,931 73.0 45.9 58.9 Bugiri 90,392 103,976 194,368 50,745 48,146 98,891 56.1 46.3 50.9 Busia 50,848 58,808 109,656 27,036 24,528 51,564 53.2 41.7 47.0 Iganga 146,468 175,289 321,757 91,698 92,572 184,270 62.6 52.8 57.3 97,475 100,850 198,325 64,793 47,127 111,920 66.5 46.7 56.4 Wakiso Eastern Jinja Kamuli 151,151 172,402 323,553 97,813 89,854 187,667 64.7 52.1 58.0 Kapchorwa 45,061 47,561 92,622 29,038 25,797 54,835 64.4 54.2 59.2 Katakwi 66,800 78,052 144,852 25,286 21,075 46,361 37.9 27.0 32.0 Kumi 85,853 100,376 186,229 33,325 33,682 67,007 38.8 33.6 36.0 Mbale 174,435 185,362 359,797 109,450 89,665 199,115 62.7 48.4 55.3 Pallisa 111,032 128,245 239,277 60,610 62,737 123,347 54.6 48.9 51.5 Soroti Tororo Kaberamaid o 85,550 94,817 180,367 46,360 38,335 84,695 54.2 40.4 47.0 123,306 136,663 259,969 74,952 70,505 145,457 60.8 51.6 56.0 29,339 32,445 61,784 7,109 3,806 10,915 24.2 11.7 17.7 Mayuge 70,110 80,003 150,113 49,283 50,641 99,924 70.3 63.3 66.6 Sironko 68,642 70,826 139,468 42,718 38,257 80,975 62.2 54.0 58.1 50 The 2002 Population and Housing Census Table A1.1: Economic Activity Labour Participation Rates by District and Sex Working Age Population (14-64) Male Female Total Labour Force Population (14-64) Male Female Total Labour Force Participation Rate Male Female Total NORTHERN Adjumani 50,625 54,218 104,843 26,269 24,546 50,815 51.9 45.3 48.5 Apac 157,024 172,031 329,055 105,954 115,004 220,958 67.5 66.9 67.1 Arua 200,318 232,160 432,478 103,141 80,172 183,313 51.5 34.5 42.4 Gulu 117,303 125,543 242,846 66,602 50,182 116,784 56.8 40.0 48.1 70,624 74,471 145,095 38,003 26,811 64,814 53.8 36.0 44.7 175,847 190,124 365,971 102,727 92,950 195,677 58.4 48.9 53.5 Kitgum Lira Moroto 49,883 56,680 106,563 32,788 30,342 63,130 65.7 53.5 59.2 Moyo 50,713 51,444 102,157 16,050 12,822 28,872 31.6 24.9 28.3 Nebbi 98,041 117,318 215,359 64,353 69,740 134,093 65.6 59.4 62.3 Nakapiripirit 38,941 41,538 80,479 20,671 7,940 28,611 53.1 19.1 35.6 Pader 81,581 88,208 169,789 51,842 45,862 97,704 63.5 52.0 57.5 Yumbe 59,368 64,706 124,074 34,396 40,286 74,682 57.9 62.3 60.2 49,749 56,304 106,053 33,993 35,095 69,088 68.3 62.3 65.1 169,404 196,272 365,676 95,589 97,986 193,575 56.4 49.9 52.9 WESTERN Bundibugyo Bushenyi Hoima 86,371 86,649 173,020 63,221 48,638 111,859 73.2 56.1 64.7 Kabale 104,245 129,572 233,817 57,034 66,709 123,743 54.7 51.5 52.9 90,058 90,393 180,451 63,784 53,430 117,214 70.8 59.1 65.0 Kabarole Kasese 123,871 140,363 264,234 72,407 74,524 146,931 58.5 53.1 55.6 Kibaale 93,650 100,237 193,887 53,042 48,745 101,787 56.6 48.6 52.5 Kisoro 43,137 62,723 105,860 28,798 41,413 70,211 66.8 66.0 66.3 Masindi 114,629 116,335 230,964 73,812 51,200 125,012 64.4 44.0 54.1 Mbarara 274,803 291,180 565,983 172,533 147,658 320,191 62.8 50.7 56.6 Ntungamo 89,811 103,491 193,302 47,251 44,441 91,692 52.6 42.9 47.4 Rukungiri 62,868 74,803 137,671 36,315 36,711 73,026 57.8 49.1 53.0 Kamwenge 61,222 71,235 132,457 42,674 49,238 91,912 69.7 69.1 69.4 Kanungu 48,430 54,794 103,224 30,974 33,213 64,187 64.0 60.6 62.2 Kyenjojo 88,136 92,842 180,978 60,403 49,646 110,049 68.5 53.5 60.8 51 The 2002 Population and Housing Census Table A1.2: Region /District Economic Activity Selected Economic Activity Indicators by District Labour Force Absorption Rate Working Population by Industry Manufacturing Sector Services Sector % Working Micro Small Enterprises Population in Subsistence Unemployment Number Employment Rate Farmers Central Kalangala 70.7 6.3 12.9 71.6 6.6 6,046 11,720 Kampala 52.3 6.8 43.5 97.9 12.4 103,913 180,502 Kiboga 63.3 1.0 4.0 19.6 2.7 9,708 15,190 Luwero 58.5 2.2 9.4 31.1 5.0 9,895 17,364 Masaka 55.8 1.7 9.9 29.7 5.8 24,528 43,369 Mpigi 55.2 1.6 5.2 24.6 6.4 39,413 64,827 Mubende 65.4 1.6 5.5 21.8 2.9 17,439 29,477 Mukono 50.2 5.0 12.5 49.7 7.6 25,877 42,095 Nakasongola 56.8 3.3 6.3 33.9 4.7 43,239 77,713 Rakai 56.6 1.5 7.5 24.2 3.1 6,664 11,859 Ssembabule 69.6 0.6 3.1 14.0 3.1 29,663 46,907 Kayunga 52.6 1.3 5.4 20.3 4.6 5,897 9,041 Wakiso 53.8 4.6 24.1 70.3 8.7 49,608 87,166 55.8 3.5 17.5 49.3 7.1 371,890 637,230 Bugiri 48.1 1.2 5.0 18.4 5.5 13,748 21,992 Busia 43.1 2.4 13.9 32.9 8.3 14,064 21,803 Iganga 55.4 1.6 6.8 20.4 3.2 30,529 51,259 Jinja 52.5 9.5 18.4 54.3 7.0 20,986 32,987 Kamuli 56.6 1.7 5.1 19.0 2.4 5,720 8,040 Kapchorwa 58.1 1.0 3.6 21.4 1.8 22,048 37,491 Katakwi 30.5 2.9 4.0 23.1 4.7 7,547 11,836 Kumi 35.3 2.5 4.4 20.5 1.9 7,439 11,143 Mbale 53.3 1.7 8.3 25.5 3.7 26,045 42,695 Pallisa 50.2 1.1 3.4 18.5 2.6 10,644 17,579 Soroti 45.9 5.2 8.9 39.9 2.2 36,114 57,552 Tororo 53.7 2.0 7.4 23.4 4.0 16,598 24,874 Kaberamaido 16.3 1.7 6.7 30.6 7.6 13,402 20,772 Mayuge 64.0 0.7 2.7 14.0 3.9 18,360 25,916 Sironko 56.4 1.1 3.0 17.5 2.9 24,482 36,047 50.3 2.4 6.8 24.3 3.7 267,726 421,986 Region Eastern Region 52 The 2002 Population and Housing Census Table A1.2: Economic Activity Selected Economic Activity Indicators by District Region Labour Force Absorption rate Working Population by Occupation Industry Manufacturing Services Working Population Sector Sector in Subsistence Farmers% Adjumani 47.9 1.6 4.1 19.0 1.1 11,509 17,894 Apac 66.6 0.5 1.0 7.5 0.8 28,501 39,945 District Micro & Small Enterprises Unemployment Rate Number Employment Northern Arua 41.1 1.5 6.9 24.9 3.0 40,129 61,107 Gulu 46.6 1.8 7.0 28.9 3.1 14,215 21,697 Kitgum 42.6 1.0 4.7 27.5 4.7 6,230 9,663 Kotido * * * * * * * Lira 52.4 1.7 4.5 18.7 1.9 27,807 41,145 Moroto 56.3 3.5 3.1 27.4 4.9 7,922 15,339 Moyo 26.6 3.4 5.7 31.3 5.9 7,477 11,678 Nebbi 61.3 1.2 4.5 13.9 1.6 1,164 2,392 Nakapiripirit 30.1 1.3 2.3 19.6 15.4 20,920 30,733 Pader 56.6 0.2 1.1 12.8 1.6 3,952 6,369 Yumbe 59.2 0.7 2.2 11.0 1.7 4,868 7,320 50.7 1.3 4.0 18.3 2.6 174,694 265,282 Bundibugyo 62.8 0.7 2.7 17.3 3.6 6,435 11,332 Bushenyi 1.6 6.4 23.8 3.3 29,824 46,635 Region Western 51.2 Hoima 63.1 2.3 6.0 27.0 2.3 16,427 26,576 Kabale 50.8 1.6 7.1 23.9 4.1 17,192 28,441 Kabarole 62.7 3.4 9.0 36.3 3.5 15,931 22,922 Kasese 52.9 1.5 8.0 28.0 4.8 8,336 13,573 Kibaale 51.0 1.2 3.2 15.0 2.8 6,672 10,938 Kisoro 64.5 0.7 2.9 15.0 2.7 21,207 33,486 Masindi 51.9 2.5 5.5 25.8 4.1 15,373 25,445 Mbarara 54.7 1.5 7.7 29.1 3.3 5,186 8,162 Ntungamo 45.7 1.3 8.7 28.1 3.6 13,698 21,335 Rukungiri 51.1 1.6 8.0 27.6 3.6 20,352 34,458 Kamwenge 67.7 0.7 2.1 10.5 2.5 42,131 63,992 Kanungu 60.6 1.6 3.5 21.6 2.6 10,513 16,376 Kyenjojo 59.1 3.3 4.0 23.3 2.8 8,481 12,459 Region 55.2 1.7 6.1 24.7 3.4 237,758 376,130 Uganda 53.3 2.3 9.3 30.7 4.5 1,052,068 1,700,628 Data for Kotido District were excluded from the analysis 53 The 2002 Population and Housing Census Economic Activity Table A1.3: Distribution of Business Enterprises by District District Name Micro Enterprises Small Enterprises Total Central Kalangala 5,819 227 6,046 Kampala 98,310 5,603 103,913 Kiboga 9,431 464 9,895 Luwero 23,325 1,203 24,528 Masaka 37,829 1,584 39,413 Mpigi 16,770 669 17,439 Mubende 24,964 913 25,877 Mukono 41,353 1,886 43,239 6,362 302 6,664 Nakasongola Rakai 28,726 937 29,663 Ssembabule 5,741 156 5,897 Kayunga 9,445 263 9,708 Wakiso 47,194 2,414 49,608 Bugiri 13,359 389 13,748 Busia 13,587 477 14,064 Iganga 29,358 1,171 30,529 Jinja 20,312 674 20,986 Kamuli 21,304 744 22,048 Kapchorwa 7,424 123 7,547 Katakwi 7,314 125 7,439 26,045 Easternn Kumi 25,367 678 Mbale 35,046 1,068 36,114 Pallisa 16,185 413 16,598 Soroti 18,079 281 18,360 Tororo 23,881 601 24,482 Kaberamaido 5,618 102 5,720 Mayuge 10,303 341 10,644 Sironko 13,124 278 13,402 54 The 2002 Population and Housing Census Table A1.3: District Name Economic Activity Distribution of Business Enterprises by District Micro Enterprises Small Enterprises Total Adjumani 11,261 248 11,509 Apac 28,088 413 28,501 Arua 39,020 1,109 40,129 Gulu 13,781 434 14,215 6,038 192 6,230 27,177 630 27,807 Moroto 7,513 409 7,922 Moyo 7,305 172 7,477 Nebbi 20,920 Northern Kitgum Lira 20,495 425 Nakapiripirit 1,105 59 1,164 Pader 3,847 101 3,948 Yumbe 4,753 115 4,868 Western Bundibugyo 6,177 258 6,435 Bushenyi 28,906 918 29,824 Hoima 15,864 563 16,427 Kabale 16,506 686 17,192 Kabarole 15,593 338 15,931 Kasese 20,503 704 21,207 Kibaale 14,876 497 15,373 Kisoro 5,014 172 5,186 Masindi 19,451 901 20,352 Mbarara 41,153 978 42,131 Ntungamo 10,244 269 10,513 Rukungiri 8,289 192 8,481 Kamwenge 8,048 288 8,336 Kanungu 6,462 210 6,672 Kyenjojo 13,334 364 13,698 1,016,333 35,731 1,052,064 UGANDA 55